City of Hercules
Hercules, California
Independent Accountants’ Report on
Applying Agreed-Upon Procedures
on Measures B Transactions and Use Tax Revenues
For the Year Ended June 30, 2021
INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Hercules
Hercules, California
We have performed the procedures enumerated below on the City of Hercules (t he “City”) in evaluating whether the Measure B – Transactions and Use Tax revenues is in accordan ce with the provisions of this measure for the year ended June 30, 2021. The City is responsible for compliance with the Measure B – Transactions and Use Tax.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating whether the Measure B – Transactions and Use Tax revenues is in accordance with the provisions of this measure. The City is responsible for receipt of Measure B - Transactions and Use Tax revenues and deposit of such proceeds into the City's General Fund. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the ends of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
The procedures and associated findings are as follows:
1. We confirmed Measure B payments with the California State Board of Equalization and calculated variances to the receipts summarized per the general ledger of the City for the year ended June 30, 2021.
Findings:
Date Posted to G /L R eceipts per G /L Paym ents per B OE V ariance 08/12/20* $ 96,448 $ 96,448 - 09/02/20* 163,339 163,339 -
09/29/20 161,872 161,872 -
11/03/20 148,173 148,173 -
12/09/20 88,609 88,609 -
01/07/21 162,702 162,702 -
02/03/21 104,996 104,996 -
03/02/21 137,028 137,028 -
03/31/21 151,328 151,328 -
05/04/21 112,439 112,439 -
06/03/21 112,397 112,397 -
06/30/21 164,427 164,427 -
06/30/21** 243,990 243,990 -
1,847,749$ 1,847,749 $
*The City accrued $408,288 for the fiscal year ended June 30, 2020. These payments apply to part of that accrual.
**California Department of Tax and Fee Administration (CDTFA) confirmed that $190,077 was paid towards accrual in July and $53,913 in August, subsequent to the yearend.
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3939352 Pun & McGeady_L_final.pdf 2 1/14/14 3:48 PM To the Honorable Mayor and Members of City Council
of the City of Hercules
2. We traced the proceeds of the tax levied and confirmed at procedure 1 to the City's General Fund for use by the City, in accordance with Ordinance 470 Sec 8-9. 12 Use of Tax Proceeds and Ordinance 481 Sec 8-9.12 Use of Tax Proceeds (amends ordinance 470).
Findings: Proceeds of taxes levied and confirmed under Measu re B were paid into the City’s General Fund for use by the City with no exceptions.
We were engaged by the City to perfo rm this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the revenue received by the City from Measure B – Transactions and Use Tax. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to m eet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City Council and the management of the City of Hercules and is not intended to be and should not be used by anyone other than these specified parties.
Santa Ana, California
January 19, 2022